Bitcoin’s [BTC] surge this month resulted in many hoping for yet another bull run in the offing, with some suggesting that the new one would dwarf the December 2017 highs in its wake. However, this is not a universally-held opinion.
Weiss Ratings, the cryptocurrency ranking firm, is in the news after positing a contrary position. The firm tweeted that bull markets usually decline in magnitude, with the previous one always larger than the imminent run.
Citing insufficiency of money that can flow into cryptocurrency assets, the bull run of tomorrow will have less to “absorb,” due to the consumption of these very funds in the past, it further said.
The full tweet read,
“Some say the next #crypto bull run will be several magnitudes bigger. However, it’s highly unlikely – every bull market tends to be smaller than the previous one. There’s only so much money in the world that #crypto can absorb.”
Bull runs have been few and far between in the cryptocurrency industry, given its infancy and volatility. However, the rallies have outpaced their predecessors. Bitcoin first rallied during the close of 2013, when it broke the $1,000 ceiling for the first time and breached the $15.7 billion mark.
The next rally began in late-2016, with Bitcoin peaking over the $1,000 mark again in early 2017 and becoming the precursor for its second bull run. In February of the same year, Bitcoin broke its all-time high of $1,149 and surged over $20 billion, breaking the previous bull run figure.
Later that year, Bitcoin skyrocketed over $19,000, with it amassing over $800 billion in market cap, over 50 times its 2013 valuation. Bitcoin and the larger market saw two significant growth spurts, albeit with varying degrees. However, the limited data points to bull runs of the future outpacing the ones in the past.
The aforementioned points only pertain to crypto bull markets. The stock market has seen several varying bull markets, with no likelihood of past runs limiting future activity.
Weiss Ratings’ bearish predictions do not stop there. Over a week ago, the ratings firm called the Bitcoin market “overbought.” Citing its “model,” the firm stated that the top cryptocurrency will “pullback to $4,000.” Although the firm did not provide a timeline for this “pullback,” Bitcoin has been holding firm at $5,300 despite the market’s sideways movement, at press time.
The ratings firm had previously credited their “model” for predicting the April 2 Bitcoin price rise. However, no supporting evidence was presented. Since then, the online community has been taking Weiss’ information with a pinch of salt.
“Every bull run in crypto has always been bigger than the last and if you’re comparing crypto to traditional markets well, you guys know better than that.”
“Weiss off the mark as usual…🙄”
Lord XRP called outWeiss, tweeting,
“Lol these guys never do research
embarrassing tweet again!!!”
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